Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

The ratios below are given for the businesses of Ewa and Max. Current ratio: Ewa $2.2:1$, Max $2.4:1$ Liquid (acid test) ratio: Ewa $1.4:1$, Max $1.0:1$ An accounting student made these statements. Which of the statements are correct?

  • A1 and 3
  • B1 and 4
  • C2 and 3
  • D2 and 4

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